Accelerated Payments
A mortgage payment option whereby the monthly mortgage payment is either split in half or in quarters and is paid every two weeks (bi-weekly) or every week (weekly).
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Real Estate Definitions
A practical A-Z reference for common Alberta real estate, mortgage, title, and condominium terminology so buyers and sellers can move through the process with more clarity.
What's Included
Coverage
Alberta-focused terminology
Glossary Size
307 terms across 23 letters
Best Use
Quick lookups while buying, selling, or reviewing documents
A-Z Glossary
Jump to a letter below to browse definitions for common contract terms, title items, mortgage concepts, condominium language, and other Alberta real estate topics.
Search by term or definition to narrow the glossary below.
Letter A
24 definitions in this section.
A mortgage payment option whereby the monthly mortgage payment is either split in half or in quarters and is paid every two weeks (bi-weekly) or every week (weekly).
A building design concept that relates to individuals with disabilities. It refers to building features that facilitate entry or use by individuals with physical and/or sensory impairments.
A document that is attached to, and made part of, an original contract as a result of making changes to elements that have already been agreed to.
A formal written statement of fact sworn to or affirmed by the author and witnessed as to the authenticity of the author's signature before a person such as a notary or commissioner of oaths who is authorized to administer an oath.
An industry professional who is expressly or implicitly authorized to act or represent another party.
A document that records a correction, addition, deletion or other changes to any previously agreed-to terms in the original contract.
The gradual retirement of a debt by means of installment payments which often includes principal and interest.
The length of time required to repay a mortgage by equal installments of periodic constant payments based on a set interest rate. The payments are typically a combination of principal and interest in blended amounts.
A table illustrating the amount of principal and interest that comprise each of the periodic installments and the outstanding principal balance of the loan after each level payment is made.
A meeting at which the Board of Directors and all members of a condominium corporation gather to elect a Board of Directors for the forthcoming year as well as discuss the finances, current issues and future plans for the condominium corporation. An annual general meeting must be scheduled within 15 months from the date on which the previous one was held.
A systematic analysis of the factors that bear upon the value of real estate. It consists of an orderly process by which the problem is defined, the work necessary to solve the problem is planned, and the data involved are acquired, classified, analyzed, and interpreted into an estimate of value.
Past due payments.
A group of silicate minerals that naturally form in host rocks throughout the world. These minerals are made up of millions of thin, fibrous crystals that are strong, durable and resistant to heat, electricity, chemical corrosion, sound, and moisture.
The amount of money that a seller is asking or intends to ask for his or her property.
The value placed on real property by a municipality as a basis for determining property taxes.
The process of determining the property value for taxation purposes. Assessment is used to determine the property owner's proportionate share of municipal taxes on an annual basis.
A parking stall that is part of the common property and is therefore owned collectively by the condominium corporation. When a parking stall is assigned, the Board of Directors is effectively granting a unit owner sole benefit of that parking stall. However, responsibility for care and maintenance of the parking stall typically remains with the Board of Directors. The Board of Directors can choose to reallocate the assignment whenever they wish. These parking stalls are not individually illustrated on Condominium Plans.
A storage area that is part of the common property and is therefore owned collectively by the condominium corporation. When a storage area is assigned, the Board of Directors is effectively granting a unit owner sole benefit of that storage area. However, responsibility for care and maintenance of the storage area typically remains with the Board of Directors. The Board of Directors can choose to reallocate the assignment whenever they wish. These storage areas are not individually illustrated on Condominium Plans.
A person to which an assignment (transfer) of property, rights or interest is made.
A person who makes a transfer under an assignment.
The act of transferring an interest in real property to another.
An individual who is licensed as a real estate associate or mortgage associate as defined in the Real Estate Act and as administered through the Real Estate Council of Alberta. An associate must be registered with a licensed brokerage in order to trade in real estate or deal in mortgages. An associate holds the basic licensing level in the real estate or mortgage brokerage industry.
An individual who is licensed as an associate broker as defined in the Real Estate Act and as administered through the Real Estate Council of Alberta. An associate broker holds the qualifications of a real estate broker, but is not authorized to operate a brokerage. An associate broker is registered with a real estate brokerage and authorized to trade in real estate on its behalf.
An improvement or personal property item attached to the real property or building. Whether an item becomes a fixture depends largely on the circumstances, with emphasis placed on the method of how the item is affixed to the property.
Letter B
19 definitions in this section.
A backup offer is when a buyer submits an Offer to Purchase on a property that is conditionally sold. If the seller accepts the backup offer, it would be next in line if the conditions are not satisfied on the conditional offer that is already in place.
A real estate market condition where property supply is strong and buyer demand is weak.
A real estate market condition where demand from buyers is in equilibrium with the supply of properties.
A type of Condominium Plan in which units are individual parcels of land. The boundaries for units within a Bare Land Condominium Plan are defined by the width and depth of each parcel of land and identified using survey monuments (e.g. steel pins, wooden stakes) placed on or under the ground.
A type of condominium plan in which units within a bare land condominium have been re-divided into smaller units with boundaries that are defined by the space within a building. The new unit boundaries are based on walls, floors, and ceilings. In effect, a Barely Blended Condominium Plan combines a Conventional Condominium Plan with a Bare Land Condominium Plan.
A meeting at which only the Board of Directors gathers to address the affairs of the condominium corporation. However, if the Board of Directors relies on any advisors (e.g. condominium manager), they may be asked to attend. Board meetings occur at regularly scheduled intervals.
A group of individuals who are elected by unit owners to carry out the duties and responsibilities of the condominium corporation according to the rules and procedures set out in the bylaws and governing policies of the condominium.
The party who obtains financing from a lender with the agreement that it will be repaid, with interest, within a defined timeframe.
A failure to fulfill an obligation under a contract.
Short-term financing used to cover the period between the purchase of a new property and the sale or closing of an existing property.
The individual authorized by the Real Estate Council of Alberta to hold the classification of broker as defined in the Alberta Real Estate Act. The broker is responsible for the operation of the brokerage and the supervision of all its employees. The broker must be registered with the brokerage that he or she manages in order to trade in real estate or deal in mortgages. There can only be one broker for each brokerage.
The company, partnership or sole proprietorship licensed by the Real Estate Council of Alberta as a real estate brokerage authorized to trade in real estate or mortgage brokerage authorized to deal in mortgages. A brokerage must have a broker responsible for its operation.
A lien for the unpaid value of work and/or materials in favour of the party who did the work on, or supplied the materials to a property, in accordance with the Builders' Lien Act.
Alberta legislation that allows registration of a lien against a property by any person involved in the building of, or improvements to, that property, including workers, contractors, and sub-contractors.
Provincial standards for the design, construction, and alteration of buildings to ensure the safety of future occupants and visitors to the premises. Alberta Building Code regulates the construction and safety of structures for both old and new buildings. Standards set by the Codes include electrical wiring, fire alarm systems, fire extinguishers, emergency routes, occupancy limits, lighting, and ventilation. These codes exist in addition to the requirements of the Municipal Land Use Bylaw.
A core component of a building that participates in making a safe, healthy and comfortable environment for occupants.
The formal permission provided by a municipality for new construction or modification of an existing structure. See also Development Permit.
A core component of a building that creates the overall framework of the building.
An individual who is in the process of purchasing real estate and enters into a purchase contract to that effect.
Letter C
37 definitions in this section.
Latin for 'let him beware,' a caveat is a written legal notice registered against the title of a property warning that a claim or an interest has been made against the property by a third party. The registration of a caveat is only notice of a claim and does not relate to the validity of the claim being made.
A doctrine of the common law that translates to 'let the buyer beware.'
A confirmation from the municipality that the location of building(s), structures and development on a property comply with all the regulations of the Land Use Bylaw. The response may be either in the form of a stamped property survey if the existing development meets regulations or by way of a written letter if the development on the property does not meet regulations. A certificate of compliance is usually required by mortgage lenders and standard real estate purchase contracts.
The movable items not securely affixed to the land or buildings, as furnishings and appliances that are not considered part of the real property. They may be referred to as personal property.
The party in a real estate transaction that is represented by a real estate professional. As per the Real Estate Act Rules, a client is a person who has entered into a service agreement with an industry member whether or not that service agreement is in writing.
A mortgage that generally cannot be paid out, refinanced or broken before the end of its term without restrictions and potentially a prepayment penalty.
The expenses payable in addition to the purchase price when a real estate transaction completes, such as legal fees, land title charges, adjustments, inspections, insurance, and other closing-related costs.
The remuneration paid for services as an agreed fee or percentage of sale price or property lease.
The costs charged in a commercial lease for the maintenance, repair, and replacement of the common areas, amenities and building systems of the property. These costs are typically assigned based on the amount of space leased.
The accumulated legislation that is enacted by the courts. The courts create laws based on decisions (i.e. precedents) that were made previously by the same or different courts.
The physical space that is not considered to be part of a unit within a condominium and that is jointly owned under the condominium corporation.
The expenses associated with the maintenance, repair, and replacement of the common property of the condominium corporation.
A property that has recently sold and is similar to the subject property.
A method of property valuation used by real estate professionals for estimating the value of residential properties.
When the interests of clients represented by the same brokerage compete with each other in regards to a real estate transaction or potential transaction.
The official mark on a Real Property Report from a municipality confirming that a property's location and improvements comply with the requirements of the Land Use Bylaw in that respective municipality.
An aspect of a contract that serves as an impediment to an enforceable contract, until such time as it has been satisfied or waived. Conditions are typically placed in a contract by a party to that contract in order to protect its interest(s) and include a specific period of time after which the condition(s) will expire. Each condition may have the same or a different expiry. Real estate purchase contracts may include conditions added for the benefit of the seller, buyer, or lender.
A conditional offer sets out the terms of the sale such as the purchase price, the date of closing, the names of the parties, and the amount of any required deposit, but it also includes conditions that must be met within a specified period of time in order for the contract to be binding on the parties. These conditions could include a satisfactory home inspection or financing acceptable to the buyer.
A real estate transaction where the seller has accepted the buyer's Conditional Offer.
The monthly fee set by the Board of Directors and paid by a unit owner to the condominium corporation.
A form of property ownership that includes both the individual ownership of a unit and the shared ownership of common property with other unit owners.
A document on which instruments for or against a Condominium Plan and condominium corporation are officially registered with Alberta Land Titles. It may also be referred to as the Condominium Sheet or Condo Sheet by real estate professionals.
Rules that govern the affairs and behaviour of a condominium corporation and individual unit owners. They work in conjunction with the Condominium Property Act and Regulation and empower the condominium corporation to control, manage and administer the units and common property. Bylaws may only be created, amended or repealed through the passing of special resolutions by the condominium corporation.
An individual who specializes in interpreting the information contained within the various documents associated with a condominium.
The package of documents that relate to the structure, finances and management of a condominium. The wide range of documents provides important information to industry professionals and to the sellers, buyers, borrowers and lenders with whom they work. Various documents related to the condominium may be obtained from the seller, member(s) of the Board or the property manager, as the case may be. In addition, some documents may be found on SPIN.
The monthly fee set by the Board of Directors and paid by a unit owner to the condominium corporation.
The separate parts of the overall condominium plan that are designated for private ownership and exclusive use of the owner. The unit boundaries and the unit factor for each unit are defined by the Condominium Plan. Also see Condominium Plan, Unit Boundaries and Unit Factor.
A situation that undermines the impartiality of a person. According to the Real Estate Act Rules, a conflict of interest arises when there is a real or apparent incompatibility between an industry member's interests and the interests of a client or potential client.
Any information concerning a client, such as his or her financial information, personal situation, or the details of a real estate, mortgage brokerage or real estate appraisal transaction.
Alberta legislation that protects consumers from unfair business practices before, during or after a consumer transaction.
The behaviours and actions of an industry professional that contravenes the Real Estate Act, the Rules, the Regulations or the Bylaws.
A type of Condominium Plan in which units are defined spaces within a building. The boundaries for units for this type of Condominium Plan are determined by floors, walls and ceilings. All areas not included in the units are considered to be part of the common property.
A condominium that involves the creation of units and common areas in an existing building through the registration of a Condominium Plan with Land Titles. Conversion condominiums typically involve buildings which previously offered rental accommodation or leased space, such as apartment buildings, offices, warehouses or storage facilities. Upon registration of a Condominium Plan, the former rented/leased spaces are converted into separately titled units.
A response to an offer in which one party rejects the original terms and proposes different terms for the other party to consider.
The Superior Trial Court for the province of Alberta that hears trials in civil matters, criminal matters and appeals from decisions of the Provincial Court.
A legal document produced by a land surveyor that clearly illustrates the boundaries of a property and the location of improvements to the land relative to the boundaries. It also illustrates other issues impacting the property, such as rights-of-way, easements, encroachments, etc. In addition, it may contain a surveyor's opinion or concerns regarding these items. A current real property report (RPR) illustrates the up to date improvements on the land and their relationship to the property boundaries whereas an existing RPR may not illustrate the current state of a property if any improvements were made to the land since the date of the RPR.
The party to a real estate transaction that is not being represented by a real estate professional. As per the Rules, a customer is a person who has contacted, but not engaged or employed an industry member to provide services.
Letter D
18 definitions in this section.
Monetary compensation that is awarded by a court in a civil action to an individual who has been injured through the wrongful conduct of another party.
The financial amount that is owed as a result of borrowing funds.
A comparison of the total monthly payments of a borrower's debt to his or her income. It is used to determine whether the borrower can afford the debt obligation.
A person who has the obligation of owing money to another party.
The failure to fulfill contractual obligations such as the failure to make mortgage payments.
A charge imposed on a borrower who fails to make a payment as it comes due under a credit agreement or who fails to comply with any other obligation under a credit agreement, but does not include interest on an overdue payment.
A sum of money submitted with an offer as evidence of the buyer's good faith and credited toward the purchase price or down payment on closing, subject to the contract terms.
A sum of money given by an owner to the condominium corporation to maintain, repair or replace common property that may be damaged, destroyed, lost or removed by a tenant of the owner.
A concept where, through a written service agreement, the brokerage, the real estate professional and the client amend the agency responsibilities owed to the client as prescribed by the common law. In essence, the agency responsibilities are transferred from the brokerage to the individual real estate professionals registered with the brokerage which results in the rebuttal of the common law presumption of attributed knowledge.
Refers to the individual real estate professional who carries out the designated agency responsibilities which have been transferred from the brokerage and which are owed to a client of the brokerage.
A style of residential condominium that has stand-alone, separate units.
A permit, issued in advance by the municipality, indicating approval for the overall use and planned construction for a particular parcel of land.
To release a person from an obligation.
The repayment of a mortgage and the legal document which confirms that the borrower is under no further liability to the lender in respect of the loan. In order to be effective, the discharge of the mortgage needs to be registered with the Land Titles Office.
The act of revealing knowledge and making information known. An industry professional is responsible to disclose openly and honestly all matters which are relevant or could result in a conflict of interest.
Alberta statute that protects the surviving spouse's interest in the homestead upon the death of the other spouse. The Dower Act grants certain property rights to the untitled spouse (the spouse who is not on title) regarding this land/property.
The property rights granted by the Dower Act to an untitled spouse (the spouse not on title) regarding the homestead. This applies when one spouse is the sole registered owner (one spouse on title). Dower rights include the right of a spouse to inherit a life interest (life estate) in the homestead. They also give the untitled spouse the ability to prevent the disposal of the property by the titled spouse, including the sale, lease or mortgaging of the property.
The portion of the purchase price that the buyer pays from his or her own funds and that is not financed by the mortgage loan.
Letter E
15 definitions in this section.
A right acquired by one party to use the land of another. Once registered on title, an easement is a binding interest in the land that runs with the land regardless of any change in ownership.
Alberta's provincial legislation that outlines the requirements for ensuring that electronic records and transactions have the same validity and enforceability as traditional paper-based transactions.
A structure that is placed, erected, or built on an adjoining property. It also applies to soffits and eaves that overhang the adjoining land.
An agreement between the property owner and an adjacent property owner to condone a building or structure built on the adjacent property, be it private property or municipal property. The agreement sets out the terms and conditions for the intruding structure to remain and grants an easement to allow that owner to enter onto the adjoining property to maintain or repair the structure. The agreement is registered on the title of all properties it affects.
The registered interests on the title of land that affect or encumber the title.
A process that determines whether or not a property is contaminated and if so, to what extent and how to best remediate it.
The money left over if an individual or organization paid all of its liabilities, collected all that was owed it and sold all its assets.
A form of business liability insurance intended to cover damages resulting from errors, omissions, and negligence by professionals that occurred in the course of providing their business services.
A person (the principal) acts in such a way as to lead a third party to believe that another party (the agent) has the authority to act on behalf of another. Note: this term should not be confused with an Estoppel Certificate.
A signed statement from the condominium corporation that confirms the financial information it provides regarding a unit is correct as of the date on the statement and can be relied on by a third party. Upon issuing the Estoppel Certificate, the condominium corporation is barred from changing any of the statements it has certified as correct.
A real estate relationship between a brokerage and a client that gives the brokerage the sole right to represent the client in a trade or potential trade in real estate.
A parking stall that is part of the common property and therefore owned collectively by the condominium corporation. The use of this parking stall is essentially permanently leased to an individual owner. Responsibility and care for this parking stall is often delegated to the unit owner. On Condominium Plans registered after September 1, 2000, these parking stalls are illustrated using dashed lines. On Condominium Plans registered before September 1, 2000, these parking stalls are typically not differentiated from the rest of the common property.
A storage area that is part of the common property and therefore owned collectively by the condominium corporation. The use of this storage area is essentially permanently leased to an individual owner. Responsibility and care for this storage area is often delegated to the unit owner. On Condominium Plans registered after September 1, 2000, these storage areas are illustrated using dashed lines. On Condominium Plans registered before September 1, 2000, these storage areas are typically not differentiated from the rest of the common property.
An oral or written agreement made between the parties involved.
When an organization presents an opportunity for an individual to communicate agreement to a stated purpose. Unless the individual takes action, the organization cannot assume consent has been given. Express consent may be given verbally or in writing.
Letter F
10 definitions in this section.
The services by which the interests of a client are met in an even-handed, objective and impartial manner without providing confidential advice, advocating on behalf of either client or using discretion or judgment that benefits one client of the other client.
The highest estate form of land/property ownership with the most rights with the fewest limitations. Although generally considered absolute ownership, it is still subject to the restrictions imposed by government.
A legal duty requiring a real estate professional to act at all times in the client's best interests.
A sale in which all conditions have been satisfied or waived so the contract is binding and the transaction is expected to proceed to closing.
A mortgage in which the interest rate remains the same for the entire term of the loan.
An improvement or personal property item attached to the real property or building. Whether an item becomes a fixture depends largely on the circumstances, with emphasis placed on the method of how the item is affixed to the property. See also Attached Goods.
The process of selling a property that is for sale by the owner without the representation of a real estate industry professional.
The legal process by which a lender takes possession and ownership of a property due to the borrower's failure to comply with the terms and conditions of the mortgage agreement.
A building system consisting of a base that a building rests upon.
A basis to discharge or terminate a contract due to unforeseen circumstances which are beyond control of the parties and which makes the contract impossible to perform.
Letter G
4 definitions in this section.
A meeting at which the Board of Directors all members of the condominium corporation gather to receive information and make decisions regarding specific issues that require input from unit owners. General meetings are usually held at regularly scheduled intervals.
The responsibilities that an agent owes to his or her principal when acting in a representation relationship.
The sum of all sources of income over a specified period of time.
Any property that has been leased or bought by persons in the illegal drug trade which has been turned into an indoor growing environment for marijuana plants.
Letter H
8 definitions in this section.
The use of real property that will support the highest value and will produce the greatest net return over a period of time.
A review of all past property ownership and registered encumbrances relating to a specific parcel of land to determine the condition of title.
A visual examination of readily accessible interior and exterior aspects of a property in order to provide an opinion on the property's condition as of the date of the inspection. The purpose of a property inspection is to look for signs that there may be problems with the property and to suggest any areas that should be looked at further by an expert. Home inspections are performed by property (home) inspectors.
An association with mandatory membership based on residence in a specific area or community.
A compulsory fee paid by property owners in the specific area under a home ownership agreement. Fees are either paid on an annual or monthly basis. A registered caveat on each property title requires the owner to make these payments to the Association.
Under the Dominion Lands Act, refers to the permanent dwelling and all farm buildings surrounding the residence.
A non-profit, legal entity incorporated and managed by its members through an elected Board of Directors. The cooperative owns the building and holds title to the land on which the structure is built. Its primary purpose is to provide housing and housing-related facilities to its members. In Alberta, there are 2 types of housing cooperatives: non-profit continuing housing cooperatives and non-profit home ownership cooperatives.
An acronym for the following 3 buildings systems: heating, ventilation and air conditioning.
Letter I
16 definitions in this section.
The use of land or property that does not meet the requirements of the current municipal Land Use Bylaw and, in the case of a property, has been built without the proper permits. The municipality can require the owner of the property to cease the illegal use upon notice.
An agreement based on the conduct and actions of the parties involved.
Authority held by an agent that is typically not given expressly but rather by inferences and that arises by virtue of being reasonably necessary to carry out the agent's express authority.
A contract that is formed based on the conduct and actions of the parties involved.
An item that is permanently affixed to the land.
Anything that is advertised, communicated or offered by a brokerage to the public or a person for the purpose of attracting business to the brokerage and includes a promise, good, service, game of chance, contest, or anything else of value.
An estate or right in land that cannot be defeated, revoked or made void.
The act of reimbursing or repaying a real estate professional for any liabilities he or she incurs on behalf of a client.
The act of securing someone or something against the possibility of future loss, damage or liability, as the case may be.
Anything offered by a brokerage to a specific person who is a party to a specific real estate trade (or potential trade), and is intended to assist, persuade or cause that person to enter into such a transaction.
The term used in the Real Estate Act, Rules, Regulations and Bylaws to refer to any person who is authorized by RECA to trade in real estate, deal in mortgages or provide real estate appraisal services in accordance with the Real Estate Act.
Refers to policies, procedures and enforcement mechanisms that are created to keep client information confidential by safeguarding it from inadvertent exposure or sharing, or purposeful intrusion by individuals who have not been granted the permission to access it.
The decision of a party (e.g. buyer, seller, borrower) to provide agreement or select an option among available options based on full information and disclosure of any conflicts of interest by the other party (e.g. real estate, mortgage brokerage, real estate appraisal professional). In addition, it requires that the party asked to make the decision (e.g. buyer, seller, borrower) understands the nature of what is being proposed, be fully informed of the choices, be aware of the consequences of any of the options, and be able to freely exercise his or her free will in the absence of duress.
The percentage charged by a lender for borrowing money, expressed as an annual rate and used to calculate interest on the mortgage balance.
A statement made to a party that is untrue, but the person making the statement had reasonable grounds to believe that the statement was true.
A false or misleading statement made by a person who knew that the statement was untruthful and a third party relies on the misrepresentation to his or her potential or actual detriment.
Letter J
2 definitions in this section.
A form of land/property ownership that involves two or more owners, with each owner having the right of survivorship. Therefore, each owner's interest in the land/property will automatically pass to the surviving owner(s) and cannot be willed to another party.
The sale of real property that is conducted under the authority and supervision of the Court of Queen's Bench.
Letter L
22 definitions in this section.
A unique, system generated 10 digit number assigned to a parcel of land in the Alberta Land Titles database and serves as a permanent identifier of that parcel until the parcel boundaries are changed.
The legal written and/or mapped description of the location and dimensions of land. See also Real Property Report.
A licensed professional involved in the gathering, storing, processing and delivering of geographic information involved in the determination of property boundaries or assembly and analysis of land related information.
The legislation that establishes the definition of a land surveyor and the practice of land surveying in Alberta. It also prohibits anyone, other than an Alberta land surveyor, from engaging in the practice of land surveying. This legislation establishes the Alberta Land Surveyors Association as the regulatory organization empowered to administer on behalf of the province, the granting of, and annual renewal of, certificates of registration related to land surveying.
Alberta legislation that outlines the land titles system of administration including land title transactions and interests in land.
An assurance to the public that owners do not suffer damage or loss from errors in title. Registered properties are protected by indefeasibility of title, which means that they are not liable to be annulled, voided or undone. The Fund is supported by fees collected by the Land Titles Offices.
The official location for processing land title documents. Alberta has 2 Land Titles Offices - 1 in Calgary and 1 in Edmonton. Otherwise, Registry Agents across the province work under licence to manage land title matters.
The person to whom an interest in land is conveyed (i.e. transferred to).
The person who conveys (i.e. transfers) an interest in land to another.
General rules applicable to all land use classifications in a municipality (e.g. Residential, Commercial, Industrial and Special district classifications).
The Municipal Land Use Bylaw divides a municipality into districts. There are generally four (4) broad district classifications: Residential, Commercial, Industrial and Special Districts. Each district has sub-categories for the different types of use within that land use classification.
A person or company who leases rights of real estate use to a tenant. See also Lease Agreement and Tenant.
A physical deficiency or construction fault in a property that is not visible or discoverable through a reasonable inspection.
A written agreement between an owner (landlord) and a tenant under which the owner allows the tenant the right of exclusive use of the property for a specified time, rent and terms.
A parking stall that is part of the common property and therefore owned collectively by the condominium corporation. The use of this parking stall is essentially permanently leased to an individual owner. Responsibility and care for this parking stall is often delegated to the unit owner. On Condominium Plans registered after September 1, 2000, these parking stalls are illustrated using dashed lines. On Condominium Plans registered before September 1, 2000, these parking stalls are typically not differentiated from the rest of the common property.
A storage area that is part of the common property and therefore owned collectively by the condominium corporation. The use of this storage area is essentially permanently leased to an individual owner. Responsibility and care for this storage area is often delegated to the unit owner. On Condominium Plans registered after September 1, 2000, these storage areas are illustrated using dashed lines. On Condominium Plans registered before September 1, 2000, these storage areas are typically not differentiated from the rest of the common property.
An individual or institution responsible for underwriting, funding and administering a mortgage loan and to whom real estate is pledged as security for the loan. This may include institutional lenders, non-institutional lenders, government lenders and private lenders.
The application and all supporting documentation provided by the mortgage brokerage industry member to the lender. Wherever possible, all supporting documentation should be provided to the lender in one package.
A person who leases property from another. May also be referred to as a tenant.
A person or company that leases rights of use for real estate to a tenant. A lessor may also be referred to as a landlord.
A financial claim permitted by statute to be registered against the title of a property for the payment of a debt.
The amount of money that a property that is under contract with a brokerage may be advertised to the public and marketed through various listing databases by the brokerage.
Letter M
29 definitions in this section.
A temporary situation in the economy characterized by prices for a product becoming grossly inflated beyond its realistic value due primarily to excessive consumer confidence.
Refers to a market condition in economics when the forces of demand and supply do not balance and there is an inherent tendency for change. Disequilibrium is indicated by the existence of either a market surplus or market shortage.
Refers to a market condition in economics where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services supplied by sellers.
The amount actually paid for a property in a particular real estate transaction.
A condition in the market in which the quantity demanded for a product or service exceeds the quantity supplied at the current price.
A condition in the market in which the quantity supplied for a product or service exceeds the quantity demanded at the current price.
The expected value of a property assuming that it has been exposed to an open real estate market for a reasonable period of time and the resulting real estate trade involves informed and willing buyers and sellers.
A form of dispute resolution that involves a trained mediator attempting to assist disputing parties arrive at a mutually acceptable solution.
The official, written record of what transpires during the meetings of the condominium corporation and Board of Directors. They are a technical account of what was discussed.
A listing on a Real Estate Board's MLS System where the real estate professional has chosen or agreed not to provide services to the seller other than to submit the listing for posting on MLS. See also Multiple Listing Service.
The amount per thousand dollars of assessed value of a property (or one-thousandth of a dollar). Therefore, a mill rate of 1 means an owner will pay $1 tax per $1,000 of assessed value.
The natural resources beneath the top layer of land. Unless specified otherwise, most land titles exclude rights to the minerals.
A false or misleading statement or representation made by one party to another or others. It may also occur with non-disclosure or concealment of material facts.
A condominium which consists of units with multiple uses (e.g. retail, commercial, residential).
As it relates to the Mobile Home Sites Tenancies Act, a mobile home is a portable dwelling other than a holiday trailer or recreational vehicle that is used as a residence, is mounted on its own chassis and running gear, is capable of being transported and is situated in a site intended for residential purposes. This definition also applies to mobile homes as residential dwellings for the purposes of property management. In Alberta sales, mobile homes are now commonly referred to as modular homes instead of mobile homes, as in other jurisdictions mobile homes sometimes include temporary or RV style dwellings.
Refers to the land that is rented for the purpose of being occupied by a mobile home to be used for residential purposes and where the owner of the mobile home is not the same individual who owns the site on which the mobile home is located.
Alberta legislation that governs the relationship between the owner of a mobile home and the landlord who rents the mobile home site to the mobile home owner.
A type of factory-built construction that involves manufacturing 3-dimensional units that are combined together to create a cohesive building. In general, modular units are approximately 85% complete when they leave the factory.
The monthly fee set by the Board of Directors and paid by a unit owner to the condominium corporation.
A legal agreement specifying the pledging of real property to a lender as security for a debt.
A borrower's failure to fulfill his or her obligations contained in a mortgage agreement.
A material misstatement, misrepresentation or omission relied upon by a lender or insurer to underwrite, approve, fund or insure a mortgage loan. It is any scheme designed to obtain mortgage financing under false pretenses.
Insurance that protects the lender against borrower default on a high-ratio mortgage. In Canada it is commonly provided by CMHC or other approved mortgage insurers, and the premium is usually paid by the borrower.
An individual or organization that lends money secured by real property for which they may receive specified payments according to the mortgage agreement.
A person that borrows funds secured by real property for which they may make specified payments according to the mortgage agreement.
A group of microscopic living organisms also known as fungi. Extensive mould could make a property unfit to live in.
A database service that real estate professionals use to advertise properties for sale.
The address of a property, which has been provided by the municipality, and typically is the city, street and number of the property on the street. It may often be used as the mailing address as well. However, it is not the legal address of the property.
Municipal Compliance Stamps are found on Real Property Reports and serve as confirmation that property improvements comply with municipal bylaws and regulations. Some municipalities refer to the stamp as a Certificate of Compliance.
Letter N
8 definitions in this section.
A false or misleading statement made by a person believed to be true and where the person carrying out the misrepresentation took reasonable steps to assure himself or herself of the accuracy of the statement. A third party may rely on the misrepresentation to his or her potential or actual detriment.
A form of dispute resolution that attempts to seek a satisfactory solution for all parties to a dispute that is based on the interest of each party as opposed to their specific position on the matter. Negotiations only involve those parties to the dispute.
The revenue after deducting expenses from gross income. If the revenue exceeds expenses, net income is positive (profit). If expenses exceed revenue, net income is negative (loss).
A condominium that involves the creation of units and common areas that never existed before in brand new structures or on raw land through the registration of a Condominium Plan with Land Titles. The units within a new condominium have never previously been offered for sale. Generally, the completion of a new condominium is scheduled for a single date after which all the construction work is to be completed.
The use of a property that met municipal requirements at one time, e.g. secondary suite, but does not meet the current Land Use Bylaw requirements. The non-conforming status may be lost if the building is renovated, damaged or destroyed. If the non-conforming use has ceased, any future use must conform to the current Land Use Bylaw requirements.
The failure or refusal to declare or reveal information that is required by one or more parties.
A real estate relationship that allows for multiple brokerages to act on behalf of a client.
An individual summary sent to each taxpayer by Canada Revenue Agency after processing his or her tax return. It may also indicate any corrections to the return, such as taxes owing or refunds to be paid.
Letter O
5 definitions in this section.
An Offer to Purchase (also known as Real Estate Purchase Contract) is the contract a property buyer will write for submission to a property seller. It contains the date of the offer, the description of the property being offered on, the amount of the deposit, the purchase price being offered, down payment and financing details, as well as the buyer's name and address, and the name and address of the seller, subject-to clauses, conditions, closing dates, and any special requirements you want to impose on sellers (for example, you want the kitchen appliances).
An individual serving on the Board of Directors for a condominium corporation who has specific duties and responsibilities as outlined under the Condominium Property Act. An individual holding the title of President, Vice-President, Treasurer or Secretary is an officer of the condominium corporation.
A mortgage that can usually be paid out in full or prepaid in larger amounts before the end of the term without a prepayment penalty.
Cash and cash equivalents used to pay for the regular, recurring (e.g. weekly, monthly or annually) expenses of the condominium.
A property used as a self-contained domestic property occupied by the owner and used as the primary place of residence.
Letter P
22 definitions in this section.
An agreement registered on the title of each property that sets out the rights and obligations of each party regarding the common dividing wall.
A physical deficiency in a property that is visible through the exercise of reasonable vigilance in the course of a property inspection.
A document that gives an individual authorization to build a new structure or demolish, relocate, repair, alter or make additions to an existing building.
Factual or subjective information about an individual that can be used to identify that individual.
Alberta legislation governing the collection, use and disclosure of personal information by private sector organizations in a manner recognizing both the right of the individual to have his or her personal information protected, and the need of organizations to collect, use, or disclose personal information for reasonable purposes.
Federal legislation governing the collection, use and disclosure of personal information collected through commercial activity applicable to all private enterprises across Canada and all organizations under federal jurisdiction. Alberta, British Columbia and Quebec are not covered by PIPEDA as they are covered by similar provincial statutes however federal organizations in these provinces are governed by PIPEDA.
Refers to a real estate professional buying, selling, leasing or renting property for personal or commercial purposes on his or her own behalf. If a real estate professional has a direct or indirect interest in a real estate transaction, they are required to make certain disclosures to the other parties in the transaction.
A group of steel bands that are coated in grease or another corrosion-inhibiting substance and encased in plastic or metal sheathing. The cable is stretched using hydraulic jacks and secured in place using anchorages before being embedded in concrete.
The date on which the buyer is entitled to take possession of the property, receive keys and occupy the premises as set out in the purchase contract.
An approval for a mortgage based on a borrower's qualifications made in advance of a real estate purchase. A written pre-approval protects the borrower by specifying the mortgage term, interest rate and maximum amount of the loan. If mortgage rates rise, the borrower receives the pre-approved rate. If rates drop, the borrower receives the lower rate. However, the borrower must take possession of a property before the pre-approval expires. They typically are 60 or 90 days, but may be as long as 120 days for new construction. Once a property has been purchased, the pre-approval is subject to the borrower submitting any final supporting documentation, providing his or her financial position has not changed. It is also subject to the property meeting the lender's underwriting requirements.
A fee a lender may charge if a borrower pays off all or part of a mortgage earlier than allowed under the mortgage terms.
A feature of a mortgage that allows the borrower to make extra payments or lump-sum payments toward the principal, usually within specified limits, without penalty.
The residential property which the borrower occupies as his or her main residence on a continual basis.
A sum of money owed as a debt upon which interest is calculated.
Any individual, group of individuals as in a syndicated mortgage or Mortgage Investment Corporation other than a financial institution that advances funds in return for a mortgage with agreed to repayment terms and conditions. Private lenders do not include chartered banks, treasury branches, credit unions, loan corporations, trust companies, and insurance companies, any persons engaged in the business of making loans secured with mortgages or any persons that manage registered pension plans.
The Board of Directors delegates some or all of the duties associated with the condominium to a condominium manager.
The process of determining the property value for taxation purposes. Assessment is used to determine the property owner's proportionate share of municipal taxes on an annual basis.
A shortcoming or failing of a property.
A written statement completed by the seller to disclose known facts, defects or past issues relating to the property. It is an information tool and does not replace inspections or other due diligence.
A visual examination of readily accessible interior and exterior aspects of a property in order to provide an opinion on the property's condition as of the date of the inspection. The purpose of a property inspection is to look for signs that there may be problems with the property and to suggest any areas that should be looked at further by an expert. Property inspections are performed by property inspectors.
The annual amount charged each property owner by the municipality where the property is located. The amount is based on the assessed value of the property in relation to the municipal tax rate for that classification of property, as determined annually by the municipality. Property taxes fund the operations and services of the municipality. In addition, portions of the property tax may also relate to the provision of education and the payment for a local improvement levy.
A legally binding agreement entered into by a buyer of real estate and a seller of real estate that details the buyer's intention to purchase a specific property from the seller of that property provided that certain terms and conditions, as described in the agreement, will be met.
Letter Q
3 definitions in this section.
The process of determining a prospective borrower's eligibility for mortgage financing related to a potential real estate purchase.
A geographic reference for a parcel of land measuring 64.7 hectares or 160 acres and usually identified as NE, SW, NW, or SW.
The minimum number of individuals entitled to vote that must be present or represented by proxy at a meeting in order for the business of the condominium corporation to be transacted.
Letter R
21 definitions in this section.
An odourless, tasteless and colourless gas. It is a by-product of the decay of uranium, a radioactive element that exists naturally in soil and rock formations.
The principal subsequently agrees to be bound by the actions of his or her agent, who has acted without authority or in excess of granted authority.
Refers to the unimproved or raw land plus any improvements that are permanent or fixed to the land.
Alberta legislation regulating the real estate, mortgage brokerage and real estate appraisal industries, including its professionals and industry practices.
A formal, impartial estimate or opinion of value, usually written, of a specific and adequately described property, as of a specific date and supported by the presentation and analysis of relevant data pertinent to a property.
The governing body for the real estate, mortgage brokerage and property management professions as authorized under the Real Estate Act of Alberta. The purposes of the Council include: to set and enforce standards of conduct for the industry and business of industry professionals; investigate, detect and suppress mortgage fraud; provide services that enhance and improve the industry and business of industry professionals; and to administer the Real Estate Act.
Refers to the land, any permanent improvements to the land and the property rights that go with the ownership of the land.
A legal document produced by a land surveyor that clearly illustrates the boundaries of a property and the location of improvements to the land relative to the boundaries. It also illustrates other issues impacting the property, such as rights-of-way, easements, encroachments, etc. In addition, it may contain a surveyor's opinion or concerns regarding these items. A current real property report (RPR) illustrates the up to date improvements on the land and their relationship to the property boundaries whereas an existing RPR may not illustrate the current state of a property if any improvements were made to the land since the date of the RPR.
A registered trademark of the Canadian Real Estate Association (CREA). Real estate professionals are not required to be members of their local board, however only real estate professionals who are members of their local real estate board are authorized to use the REALTOR® term.
A false or misleading statement made by a person who while they had no intent to mislead anyone failed to take the reasonable steps to confirm the statement's truthfulness or accuracy. A third party may rely on the misrepresentation to his or her potential or actual detriment.
The process by which a real estate appraiser evaluates, chooses and selects from among two or more alternative conclusions or indications to reach a single answer (i.e. final value estimate).
A condominium that consists of units that owners and/or occupants visit from time to time as a weekend or vacation destination.
The restoration of a property to satisfy conditions without changing the plan, form, or style of a structure. In urban renewal, the restoration to good condition of deteriorated structures, neighborhood, and public facilities. Neighborhood rehabilitation may extend to street improvements and the provision of such amenities as parks and playgrounds.
Measures to reduce contamination to a level that does not impair or damage the environment, human health or safety or property.
The compensation (e.g. commission, gifts, other benefits) received by the brokerage for services rendered to a party (e.g. customer, client).
A parking stall owned by a unit owner or the condominium corporation that is used on a temporary or ongoing basis (e.g. month-to-month) by another unit owner in exchange for a fee.
A storage area owned by a unit owner or the condominium corporation that is used on a temporary or ongoing basis (e.g. month-to-month) by another unit owner in exchange for a fee.
A type of real estate relationship in which a real estate professional acts for one of the parties to a trade or potential trade in real estate on behalf of his or her brokerage.
A condominium in which units are offered for sale for other than the first time. The structures in which units may be contained are not typically new and the units themselves have been previously owned and occupied.
Cash and cash equivalents used to pay for major capital repairs and replacements of the condominium corporation's common property that do not occur on an annual basis.
A type of property that a municipality has designated for use as single family detached homes, townhouses, apartments, condominiums, and cooperatives that is or was used as a residence.
Letter S
12 definitions in this section.
A penalty imposed for violating a condominium bylaw.
A supplementary form completed and included with the real estate purchase contract for the benefit of a buyer in a real estate transaction.
A table that includes the legal number for each unit, the number of unit factors assigned to each unit and the approximate floor space of each unit within the condominium.
The individual on the Board of Directors who is responsible for maintaining and preserving the official records of the condominium corporation and Board of Directors (e.g. owner lists, correspondence to unit owners) as well as recording or supervising the recording of the meeting minutes of the Board of Directors and condominium corporation.
A real estate market condition where buyer demand is strong and property supply is weak.
A style of residential condominium consisting of 2 units placed side-by-side that share a common wall.
A financial obligation in addition to a unit owner's monthly contributions. The portion of the special assessment owed by each unit owner is calculated based on unit factors. Special assessments may be paid as a lump sum or in periodic installments, depending on the payment schedule established by the condominium corporation, by a specific date.
A closing document that itemizes credits and debits between buyer and seller, such as deposits, property taxes, condominium fees or utilities, to determine the exact amount due on closing.
The term used in British Columbia for a condominium. In Alberta, strata refers to the volumetric space located below, above or below and above the surface of land or occupied by a structure that is shown on a Strata Plan.
A mortgage qualifying calculation that requires the borrower to show that he or she could afford the loan payments at an interest rate higher than the contract rate.
The rights to the physical ground, the air space above the ground, and any materials from the top layer of land that can be excavated, as sand or gravel, but does not typically include rights to minerals beneath the land.
The technique and science of accurately determining and recording the measurements of boundaries and elevations of land or structures.
Letter T
15 definitions in this section.
A written agreement between an owner (landlord) and a tenant under which the owner allows the tenant the right of exclusive use of the property for a specified time, rent and terms.
A person or organization that contracts with a landlord to occupy a specific space for a defined period of time according to the terms of a lease.
A form of ownership of land/property that involves two or more land owners with no right of survivorship by any owner. Therefore, each owner may will his or her share of the land/property to another party.
A contractual detail that represents points of agreement between the contracting parties (e.g. inclusions, exclusions, date contract takes effect, length of the contract).
A party that is legally affected by a real estate or mortgage transaction but not directly involved in it.
A form of property ownership in which multiple parties hold similar rights and each party is allotted a time period during which they may have exclusive use of the property. These properties may be either purchased, whereby the use of the property lasts until the interest is sold, or leased, whereby the use of the property only lasts for a certain number of years.
A document that records the information about the land, such as the legal land description, municipal jurisdiction, ownership and registered interests. The Land Titles Office no longer issues a paper Certificate of Title, but a paper copy may be available from any Registry Agent in Alberta. An electronic copy is available on the Spatial Information System (SPIN) operated by Alberta Registries, Service Alberta.
A contractual arrangement that indemnifies the insured against loss or damage resulting from title defects, some non-title issues relating to the ownership of real property, or the enforcement of liens that exist against it. Different title insurance policies exist for lenders and property owners. Title insurance is more common in residential real estate, although commercial policies are also available.
A review of the current title and registered interests against a property to confirm ownership and identify items such as mortgages, caveats, easements, rights-of-way or other encumbrances.
A parking stall that has its own Certificate of Title and therefore is a unit onto itself. Titled parking stalls are held in fee simple ownership by the individual who is registered on the title. These parking stalls are depicted on the Condominium Plan using solid, bold lines.
A storage area that has its own Certificate of Title and therefore is a unit onto itself. Titled storage areas are held in fee simple ownership by the individual who is registered on the title. These storage areas are depicted on the Condominium Plan using solid, bold lines.
A system for recording land title transactions and interests in land, as prescribed in the Land Titles Act. It includes three supporting principles: the current title accurately reflects the facts about the property (i.e. Mirror Principle); the current title has all the information about the property (i.e. Current Principle); and the provincial government guarantees the accuracy of the title (i.e. Insurance Principle). This system improved on previous land title systems by facilitating land transactions and providing security of title, thus eliminating time-consuming and costly searches for an accurate chain of title for each transaction.
A style of residential condominium consisting of multi-story units attached on 1-3 sides. Each unit typically has its own private entrance.
A means to resolve a conflict of interest that occurs in transactions when a brokerage practising agency under the common law or a real estate professional in designated agency represents clients with opposing interests in the same transaction.
A real estate professional who has been engaged by the clients under a transaction brokerage agreement to provide facilitation services to clients in the same trade.
Letter U
7 definitions in this section.
The movable items not securely affixed to the land or buildings, such as furnishings and appliances that are not considered part of the real estate.
An offer or purchase contract that contains no outstanding conditions and becomes binding once it is accepted.
A tank used by a service station, car dealership, taxi company, bus line, research facility, farm or other organization to store various products including gasoline, diesel fuel, oil and other chemicals beneath the surface of the ground.
A physical space within a structure or parcel of land that is individually owned within a condominium.
The dimensions of a unit in a condominium that are stated in the Condominium Plan. If the unit boundaries are described in 2-dimensions (length and width), it is a bare land condominium. If the unit boundaries are described in 3-dimensions (height, length and width), it is either a conventional condominium or barely blended condominium.
The portion of financial responsibility assigned to each unit owner for their share of the common property. The total sum of all unit factors for a condominium in Alberta must equal 10,000.
A document that records the information about the land, such as the legal land description, municipal jurisdiction, ownership and registered interests. The Land Titles Office no longer issues a paper Certificate of Title, but a paper copy may be available from any Registry Agent in Alberta. An electronic copy is available on the Spatial Information System (SPIN) operated by Alberta Registries, Service Alberta.
Letter V
5 definitions in this section.
An agreement that contains all the essential elements of a contract that is legally binding and enforceable by the courts.
The process whereby the value of property is estimated or determined through various means. This term is synonymous with evaluation.
A mortgage in which the interest rate can rise or fall during the term based on changes to the lender's prime rate or another specified benchmark.
A contract that is not valid or legally binding.
A contract that may be treated as legally unenforceable at the option of one of the parties.
Letter W
4 definitions in this section.
A written notice confirming that one or more conditions in the purchase contract have been satisfied or waived, making the contract firm to the extent of those conditions.
A written contract by which a person instructs how his or her estate should be distributed upon the person's death.
A written directive from the court issued against a property title when a claimant successfully sues a debtor resulting in a judgment in the claimant's favour. The Writ relates to the carrying out of this judgment.
A contract in writing that establishes the relationship between the parties as to the services and obligations to be performed by an industry professional. Written service agreements are required in residential real estate when a real estate professional is working with a consumer as a client.
Letter Z
1 definition in this section.
General rules applicable to all land use classifications in a municipality (e.g. Residential, Commercial, Industrial and Special district classifications).